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Fixed cost Essay Examples

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Figuring Fixed Costs

10.1 The highest number of meals served was 4,900 in December, with the lowest of meals being 3,500 in July making a difference of 1,400 of meals served, between the two months. The cost per meal variable is 1400÷$5500.00 for a total of $3.93 (WHDM’s) fixed cost is computed as follows $20,500.00-(3,500*$3.93) =$6,745.00 According to…

DSC2006 Unofficial Mid-Term Mock Test

DSC2006 Unofficial Mid-Term Mock Test 2010/11 Semester 2 Select the best answer 1. Business organizations consist of three major functions which, ideally: a) support one another b) are mutually exclusive c) exist independently of each other d) function independently of each other e) do not interface with each other 2. Revenue management is concerned with:…

Challenges Associated with High Fixed Costs – Airlines

What are the challenges associated with managing in a business with high fixed costs like airlines? To understand the challenges firms face with regard to high fixed costs we must first have a basic understanding. A fixed cost is a routine cost the company incurs despite production, and changes in volume. It is a cost…

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Identify the Difference Between Start Up and Operating Costs, Variablecpsts and Fixed Costs

A start-up cost is a cost that you start with for example in the flower shop it would be a deposit on the shop and the first month’s rent. Also the first lot of stock, advertisement a sign, table, counter, till and a credit card machine. The operating costs are costs that you carry on…

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Actions to Reduce Fixed Costs

  •Increase volume such that the fixed costs become a smaller proportion of the cost base. •Derive value from sweating the assets by working them as much as is safely and practically possible. For example, airlines plan their schedules to maximize night-time flying between 11pm and 6am when there are often legal restrictions on landings…

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